SAP SRM

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About the Tutorial

SAP SRM (Supplier Relationship Management) is a SAP product that facilitates the

procurement of goods via a web-based platform. Organizations can procure all type of

products like direct and indirect material, services and this can be integrated with SAP ERP

modules and other non-SAP backend systems for accounting and planning.

This is an introductory tutorial that covers the basics of SAP SRM and how to deal with its

various modules and sub-modules.

Audience

This tutorial has been prepared for professionals who aspire to learn the fundamentals of

SAP SRM. Consultants and project team members who have already been implementing

SAP SRM Server can also draw benefits from this tutorial and refresh their knowledge.

Prerequisites

The course is designed for beginners with little or no knowledge of SAP SRM. But you need

to have a basic understanding of SAP Basics to make the most of this tutorial.

Copyright and Disclaimer

Copyright 2016 by Tutorials Point (I) Pvt. Ltd.

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of the publisher.

We strive to update the contents of our website and tutorials as timely and as precisely as

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in this tutorial, please notify us at contact@tutorialspoint.com.

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Table of Contents

About the Tutorial .................................................................................................................................... i

Audience .................................................................................................................................................. i

Prerequisites ............................................................................................................................................ i

Copyright and Disclaimer ......................................................................................................................... i

Table of Contents .................................................................................................................................... ii

1. SAP SRM – OVERVIEW ......................................................................................................... 1

Key Benefits and Functionalities ............................................................................................................. 1

Technical Benefits of SAP SRM ................................................................................................................ 2

2. SAP SRM — NAVIGATION .................................................................................................... 3

3. SAP SRM — FUNCTIONS ...................................................................................................... 7

4. SAP SRM — SOFTWARE COMPONENTS ............................................................................... 9

5. SAP SRM — DEPLOYMENT OPTIONS ................................................................................. 11

Standalone Deployment ........................................................................................................................ 11

Classic Scenario ..................................................................................................................................... 11

Extended Classic Deployment ............................................................................................................... 11

Decoupled Deployment ......................................................................................................................... 12

6. SAP SRM — CONTRACT MANAGEMENT ............................................................................ 13

Integration with SAP ERP to Upload Contracts ...................................................................................... 13

Change History in CCM .......................................................................................................................... 14

Uploading and Managing Central Contracts in ERP ............................................................................... 16

Managing Authorization in Central Contract ......................................................................................... 16

Performing Changes in Central Contract................................................................................................ 18

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7. SAP SRM — CREATING A CENTRAL CONTRACT .................................................................. 19

Central Contract Status ......................................................................................................................... 20

8. SAP SRM — BID INVITATION .............................................................................................. 22

Creating Bid Invitations in Bidding Engine ............................................................................................. 22

Types of Bid Invitation .......................................................................................................................... 23

9. SAP SRM — QUOTATION AND LIVE AUCTION COCKPIT ..................................................... 31

Creating Live Auction ............................................................................................................................ 31

Converting RFx to Auction ..................................................................................................................... 33

10. SAP SRM — PROCUREMENT .............................................................................................. 34

11. SAP SRM — INVOICING AND PURCHASE ORDER ................................................................ 35

Creating Collective Invoice .................................................................................................................... 35

12. SAP SRM — SHOPPING CART ............................................................................................. 37

Types of Shopping Cart .......................................................................................................................... 38

Key Steps in Creating a Shopping cart ................................................................................................... 39

13. SAP SRM — SUPPLIER SELF-SERVICE .................................................................................. 41

Supplier Self-service: Other Functions ................................................................................................... 41

14. SAP SRM — POST INSTALLATION FOR LAC ........................................................................ 45

15. SAP SRM — CONFIGURING SINGLE SIGN-ON ..................................................................... 46

16. SAP SRM — SUPPLIER EVALUATION .................................................................................. 50

Creating Supplier Survey Cockpit ........................................................................................................... 50

Evaluation Area ..................................................................................................................................... 51

Evaluation Category .............................................................................................................................. 52

17. SAP SRM — SRM MDM CATALOG UPGRADE ..................................................................... 53

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18. SAP SRM — SECURITY........................................................................................................ 54

Profile Generator (PFCG) ....................................................................................................................... 57

Central User Administration .................................................................................................................. 59

UME Engine ........................................................................................................................................... 59

19. SAP SRM — SYSTEM LANDSCAPE ...................................................................................... 61

Operational Contract Management ....................................................................................................... 62

20. SAP SRM — NETWORK AND COMMUNICATION SECURITY ................................................ 63

Other Internal Services in SAP ............................................................................................................... 66

21. SAP SRM — AUDITING AND LOGGING ............................................................................... 67

SAP SRM

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SAP SRM (Supplier Relationship Management) is a SAP product that facilitates the

procurement of goods via a web-based platform. Organizations can procure all type of

products like direct and indirect material, services and this can be integrated with SAP ERP

modules and other non-SAP backend systems for accounting and planning.

SAP SRM allows you to optimize your procurement process to work effectively with

suppliers to get long term benefits and also to perform forecasting, procurement cycle and

to work with partners. You can reduce the time span and costing of procurement cycle

using innovative methods to manage business processes with key suppliers.

SAP SRM supports the full procurement cycle, i.e., starting from source and purchase to

pay through complete procurement process with suppliers and effectively managing

supplier to build long-term relationship.

SAP SRM helps you to emphasize supplier performance management and helps you to

streamline the procurement operations, put compliance with contracts and purchasing

policies, and improve overall cost management and expenditure.

Key Benefits and Functionalities

There are various benefits and key functionalities that you can achieve by using SAP SRM

product and by integrating with other SAP ERP modules and non-SAP systems for planning

and optimization.

Following are the key benefits of SAP SRM:

Catalog Management

Suppliers can easily manage catalog data and this data can easily be integrated with

business processes like accounting, finance and planning.

Procure to Pay Optimization

Using SAP SRP product, you can streamline procure to pay lifecycle and improve

communication with supplier and cost management.

Self Service Procurement

End-users can search products using multiple product catalog and helps them to find and

purchase product that are compliant with purchase and procurement policy of the

company.

Reporting Functionality

Using SAP Supplier Relationship management, you can create reports related to

procurement activities, compliance and contract management, and managing costing in

procurement process.

1. SAP SRM – Overview

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Contract Management

You can manage contracts using secure central repository. This helps to reduce compliance

violations and allows end-users to follow business processes during self-service

procurement.

Technical Benefits of SAP SRM

Following are the technical benefits of SAP SRM:

Live Auction Cockpit to perform real time monitoring and bidding process in

procurement process.

SAP NetWeaver Business Intelligence to perform data warehousing, analytics

and web-based reporting.

Easy transactions between SAP SRM and online transaction processing system

OLTP.

SAP bidding engine to create quotations and to process them.

SAP SRM

Catalog Management

Procure to Pay

Optimization

Contract Management

Reporting Functionality

Self Service Procurement

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To check SAP SRM software navigation, you can login to SRM system using SAP GUI client.

Select SRM system and enter the user name and password. It will display the SAP Easy

Access Supplier Relationship Management screen.

In SAP menu, you have various folders like:

Master Data

Business Partner

Products

Payment Cards

To open Organization model, you can run T-code or go from Master data -> Process

Organization Model.

When you build an organization structure, it is created downward. At the top, you have

root organization structure and then you have other organization units like subsidiary,

business units, etc.

2. SAP SRM — Navigation

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You can also access SAP SRM Portal Desktop using web URL. The portal area is divided

into the following parts:

At the top, you have SRM Work Centers.

To the left, you have Navigation area.

At the bottom, you have Content area.

As per the SRM user role, the left side navigation area is displayed. If you have access,

you can see additional fields in SRM portal. On the left side, you can select work set and

Person Object Work list will be displayed on the right side.

The results of selected query are displayed in a table form.

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You can select any of the rows in table and can use the top buttons like display, edit,

delete, preview, refresh and export, etc.

In the following screenshot, you can see a table with a three-step approach to add goods

to a shopping cart and complete and order.

In the shopping cart, you can add, delete, copy, paste or duplicate an item in shopping

cart. Note that you need to create a separate shopping cart for each supplier.

Performing search is easy and user-friendly. It eases the process of creating a Purchase

Order for a few materials and some suppliers.

In SAP GUI, you can see the following configuration options under SAP SRM:

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You can expand SAP SRM to see various settings under SRM system:

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You can perform various functions in SAP SRM. Using the SAP SRM portal, a user can use

self-service option for different options.

The key functions in SAP SRM include the following:

Navigation

In SAP SRM, screens are easy to navigate. SRM portal has a user-friendly and easy to

manage look.

Searching

In SAP SRM portal, you can easily perform search for different products and suppliers.

Search criteria is easy to use.

You can also restrict the number of entries in Search.

To see the details, select the object and click the OK button.

3. SAP SRM — Functions

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Purchase Orders

You can create purchase orders for a few of the material type. POs are also automatically

created for some materials and suppliers.

Account Assignment

A user can also define default account preferences. Cost assignments can be defined as

per quantity, percentage or value of the material. You can also search G/L codes online

using search option.

Workflow

In SAP SRM, the approval process for Purchase Orders is very easy. This allows

organization to perform goods requisition in an easy and simple manner.

Copying and Deleting

A user can use copying option to copy the items in the shopping cart. Edit option can be

easily used to edit the address, cost distribution, etc.

Deletion is also easy in shopping cart as you can easily select a good in cart and delete it.

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There are various application and technology components that are a part of SAP Supplier

Relationship Management product. Application components include components that are

required to create RFx and submit bids, for financial management, BI needs, Enterprise

portal for application interaction and other various components to perform different

functions.

Technology component consists of NetWeaver Process Integration to integrate with SAP

and non-SAP external systems, SAP GUI for configuration, and R/3 plugin for Master Data.

Let’s see each of the components under application and technology in detail:

SAP Supplier Relationship Management Server

SAP SRM server includes SAP SRM server and SAP Bidding engine. SAP SRM is based on

SAP NetWeaver application server and is available for different platforms and database.

You can check all the releases of SAP SRM on SAP Market place under Product

Availability Matrix (PAM).

SAP SRM Bidding Engine

SAP SRM Bidding Engine can be used to create and process requests for bids; bidders can

submit bids and other functions in RFx.

Bidding engine defines the rules for bidding and bidders can use it to submit bids in the

system.

SAP NetWeaver BI

In SAP SRM spend analysis, BI is primarily used and requires Application server ABAP on

the same system. It may also require Java Application server and SAP Enterprise portal.

SAP NetWeaver Enterprise Portal

This is used as an entry point for users to manage applications and information related to

SRM. It provides role-based and secure access to applications and services.

Online Transaction Processing System

Various systems can be used for backend transaction processing to manage material and

financial queries. SAP ERP system can be used and data exchange occurs between SAP

SRM and SAP ERP system.

You can also install SAP SRM as standalone without a backend system.

4. SAP SRM — Software Components

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Live Auction Cockpit Server

LAC web presentation server is a J2ee based software application. This provides the user

with an option of real time bidding, real time monitoring and reverse auction options.

Apart from these, technology component also includes SAP Process Integrator for

integrating processes from different systems, SAP GUI for configuration and R/e plug in

for data exchange between one or more R/3 systems and other components.

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SAP SRM can be integrated with SAP ERP for backend processing for procurement,

inventory and financial management. It can integrate with SAP ERP applications and non-

ERP systems.

There are four different deployment scenarios that you can use with SAP SRM:

Standalone Deployment

In a Standalone Deployment model, all the procurement processing is performed in SAP

SRM system and backend accounting system is used for invoice financial processing.

In a Standalone Deployment scenario, purchase order management, shopping cart and

goods receipt and invoices are processed in SRM system.

This scenario is suggested for the following customers:

When there is no operational backend system for material management and there

exists only financial accounting systems in landscape.

When you want to move all procurement activities in SAP SRM system and hence

allow companies to decrease the work load on the backend procurement system by

transferring buyers which are interested to procure from selected options.

It is recommended for customers who want to maintain only minimal product data and

only rely on supplier catalogs.

Classic Scenario

In a classing deployment model, you process the shopping cart in SAP SRM and supporting

documents are processed in backend ERP system.

You can perform goods receipt or invoices in any of the systems.

This deployment model is suggested for those customers who have a strong backend

procurement system and where buyers do not want to use multiple systems for their

operations.

Extended Classic Deployment

In this deployment model, procurement process takes place in SAP SRM system and PO is

generated in SRM system and a read only copy is created in backend ERP system.

You can perform goods receipt or invoices in any of the system as in the case of classic

scenario.

This model is recommended where you want few of procurement functionalities in SAP

SRM like PO response, etc.

5. SAP SRM — Deployment Options

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You can implement direct material in extended classic deployment scenario.

Decoupled Deployment

When you use all the three scenarios parallel, this is called decoupled scenario. When

customers want to utilize all the functionalities of each component, SAP SRM allows to use

all the above scenarios in parallel.

Example

Consider a customer who wants to use the standalone deployment model for certain

indirect materials and routine services, the classic scenario for stock materials to utilize

inventory and planning capabilities of backend materials management system, the

extended classic deployment scenario to perform effective supplier management to

provide response for PO’s.

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In SAP SRM, a contract is defined as a negotiation between a supplier and an organization

for supply of goods and material or delivery of services within defined terms and conditions

in a specific time period. These contracts are placed at central secure location to resolve

the lack of visibility into contract across the different groups.

This allows you to manage different local contracts with different terms and conditions for

similar type of goods.

CCM allows buyers form different departments of company from different locations to take

advantage of negotiated terms and conditions. The terms and conditions are transitioned

into a central contract and to be distributed to local purchasing group to perform

procurement process for the company.

SAP SRM provides the following CCM features:

SAP SRM helps you to improve and fasten procurement process by automating and

streamlining the contract management process.

SAP SRM helps you to automate transfer of global negotiated conditions into

multiple ERP systems and into non-SAP solutions using Enterprise Services.

SAP SRM allows you to ensure contract compliance by providing a repository of

standard contracts that can be used for creating new contracts.

You can easily create or change a central contract by directly negotiating with

suppliers or by creating RFx.

Using CCM, you can control access to central contract using the assignment of

authorization on central repository.

You can also configure system to generate alerts for the expiring contracts, etc.

You can customize central contract distribution as per your needs and it can be an

individual contract or multiple contracts for the same category.

Integration with SAP ERP to Upload Contracts

To upload the central contracts and to schedule agreements from SAP ERP system to SAP

SRM system, you can use program BBP_CONTRACT_INITIAL_UPLOAD. As per your

configuration, these contracts are loaded and scheduled from ERP to SAP SRM system.

The initial upload is supposed to be a one-time activity and is performed at the time of

installation in the backend system.

To perform contract search, you can use TREX search engine. This search engine is

provided with SAP SRM but you have to install it and run a program to create indexing for

all the available contracts. You should run program BBP_TREX_INDEX_ADMIN that

6. SAP SRM — Contract Management

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creates a new index for existing documents and helps you to perform indexing for all new

or changed documents when a contract is saved.

You can also evaluate your contracts by creating BI reports when you integrate with SAP

NetWeaver Business Intelligence.

To generate BI reports, go to SAP NetWeaver -> BI Content -> Supplier Relationship

Management -> Contract Management.

Change History in Central Contract Management

You can also view change documents available for all the fields in Central Contract

Management (CCM) and they are used for audit trial. You can compare the versions of a

contract by comparing changes at item and header level between these versions.

Let us follow these steps to compare the versions:

Step 1: To perform this, go to SRM Server -> Cross Application Basic Settings -> Switch

on version control for purchasing documents

Step 2: Login to SRM system as in the following screenshot using SAP GUI.

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Step 3: Type SPRO -> IMG -> Navigate to SRM Server -> Cross Application Basic Settings

Step 4: You can view all business transaction categories for which version control is on/off.

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Step 5: To display change documents and to compare versions of a central contract, click

on Tracking when you display the central contract.

Uploading and Managing Central Contracts in ERP

Let us now understand how to upload and manage central contracts in ERP. You can upload

contracts in SAP ERP system by going to SAP ERP Central Component -> Logistics ->

Materials Management -> Purchasing -> Outline Purchase agreements with vendors ->

Contract -> Central Contract -> SRM Central Contract.

Managing Authorization in Central Contract

In SAP ERP, it is possible to authorize users to assign a role to create, change or display

a central contract in repository. Company’s law department analyzes the agreement before

it is released for users. You can assign a role display/change to the legal team to view

notes with no access to confidential fields like terms and conditions.

Let us follow these steps to assign a role display/change:

Step 1: To assign the authorization for Central Contract, go to SAP SRM -> Strategic

Purchasing -> Contract Management -> Contract

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Step 2: If you are not able to call this transaction from SAP Easy access, you can go SRP

portal and go to Strategic Purchasing tab.

Step 3: You have to go to Authorization tab -> To edit an existing user, select a user

and edit

You can create a new user and assign the authorization as per the requirement of the user.

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Performing Changes in Central Contract

You can perform same changes to one or more central contracts or to a central contract

hierarchy. This is used to perform mass changes to multiple contracts as per business

needs.

Example

Consider a case where you have multiple contracts with a Supplier ABC. Now with increase

in order volume, you will get an additional discount of x%. Now to maintain multiple

contracts with this supplier ABC, you have to change all contracts at one time.

Note

You can’t make changes to central contracts which are marked as completed.

To make mass changes for central contract, you have to search and select contracts in

central repository.

To perform mass change, go to mass change option and it will open the wizard.

You can see all the contracts that you have selected. To perform a mass change, select

mass change parameter and specify the change and same way select other mass change

parameters and specify the change.

You can see a flag next to all those fields for which parameter has been changed and this

indicates that you have changed this parameter. All the contracts in Wizard remain locked

when you are performing mass changes so that no other user makes changes to these

projects.

It is also possible to perform the changes in background as the time required to perform

changes depends on the number of central contracts and you can close the Mass Change

window. Once changes are completed, you will get an email with the link of mass changes

completed. You can view if changes are applied successfully or not.

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You can create a central contract manually in SAP SRM. If you have to create multiple

contracts that are similar to each other, you can create a template and then copy an

existing contract based on the template.

To create a Central Contract, go to SAP SRM -> Strategic Purchasing -> Contract

Management -> Create Central Contract

You can see different tabs — Header tab, Overview tab and Distribution tab. In Overview

tab, go to fill the item details and general header data. You can fill the following details in

a contract:

Target Quantity and Value

In this field, you need to enter the target quantity and target value. This defines the

quantity which shows the number of units to be purchased from a supplier in a time period.

Release Value

It is defined as accumulated value of all POs against the central contract.

Basic Contract

Now if you define a contract as basic contract, it only contains header data and conditions

and you can’t put line items and cannot be distributed to a catalog.

Item Category

When you define item category as normal, it must contain a product category. Under

product category, you need to define a target value and a product category item always

refers to all connected catalogs.

7. SAP SRM — Creating a Central Contract

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Central Contract Status

Following are the status available for a central contract in SAP SRM system:

Awaiting Approval

As per system configuration, an approval workflow is started when you select Release for

a contract. In this case, contract status is set to Awaiting Approval.

Completed

When a contract is in expired or released status and you select Close Contract, the status

of the contract is set to Complete and this is an irreversible status.

You can search the completed contracts and use them as template for creating new

contracts.

Deleted

When a contract is not released, you can set the status to delete and this contract is

achieved.

Incorrect Distribution

When the distribution of a central contract to backend system fails, then the system sets

the status as distribution incorrect.

Expired

When the validity period of a contract expires, status is set to expire. A system

administrator can schedule a report when a contract is expired.

In Distribution

When your contract is in distribution process in the backend system, the status of contract

is set to in distribution.

In Negotiation

When a contract is selected for renew and is in saved state, the status of contract is set

as in negotiation.

In Renewal

This is set when you select a contract for renewal in released state.

Locked

When you want a contract to be temporary unavailable as source of supply, you can set

the status to Lock. To unlock a locked central contract, you can select Unlock.

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Released Rejected

When the central contract is not approved for release, the system sets the status of project

to Release Rejected.

Released

When you select a central contract to release and it has been approved, the status of the

contract is set to Release. This contract can be used for sourcing.

Saved

This status is set when you save a central contract. This contract is not available for

sourcing till it is approved and released.

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A bid invitation is defined as a request from a buyer to a supplier to submit a quotation

for goods or services as per the mentioned criteria. Bid invitation is also known as request

for quotation RFx.

A request for quotation RFx is an invitation sent to supplier by an organization’s purchase

department to submit RFx response for the supply of certain goods under specified terms

and condition. RFx document contains information like vendor’s name, vendor's address,

quantity of goods and delivery dates for the material. You can create RFx with reference

to a purchase requisition and all the information is copied from the purchase requisition.

When RFx is created without any reference, you can enter the details manually in RFx

document.

Creating Bid Invitations in Bidding Engine

To create bid invitations for services and goods, buyers can use SAP Bidding Engine to

create public and restricted bids. You can customize system to perform bid invitation

automatically in the background for requirements where no source supply is assigned.

You can check assigned sources by going to SPRO -> IMG -> SRM Server -> Sourcing ->

Define sourcing for product categories

Login to SRM system -> SPRO -> IMG

8. SAP SRM — Bid Invitation

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Here you can check sourcing for product categories:

Types of Bid Invitation

In SAP bidding engine, you can create two types of bid invitations:

Public Bid Invitations

These bid invitations are available to all bidders via a web portal. Bidders can access the

url available on web portal to login to SAP bidding engine and there they can enter the

bids. If you want some specific bidders to send the bid, you can directly email them the

bid invitation.

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Restricted Bid Invitations

In restricted bid invitations, the hyperlink to login to SAP Bidding Engine is sent to some

specific set of bidders via email. Bidders can login to Bidding Engine and enter the bid.

In addition to this, you can create emails using the Smart Forms feature:

Step 1: To create a bid invitation, you have to login to the SAP Bidding Engine. You can

search for existing bid invitations or create a new invitation.

Step 2: When you create a new bid invitation, you have to mention the name and number

range at the top.

Step 3: Enter the basic data for bid invitation, this includes:

Type of Bid Invitation (public/restricted)

Product Category

Start Date and Time — When a bidder can enter the bid details in the system. When

no time is mentioned, bidders can bid when the invitation is published.

End Date and Time — Bidders can submit their bids until this time period.

Opening Date and Time — This time is defined as the time when you can open and

reject the bids.

End of Bidding Period — This allows the bidder to mention the end of bidding period

till when that bid is valid.

Detailed Price Information — This condition can be used to allow bidder to put price

scale.

Bidders/Bid — You can search for suppliers/bidders from the supplier directories

and extend the bid invitation to these bidders in case of public invitation.

Step 4: Similar way, you can define other fields like currencies in which bid is accepted

and if the bidder can bid in any currency of their choice. You can also attach any additional

documents you want to share with bid invitations.

Step 5: Under Item data, you can fill item details by transferring items from a catalog or

by transferring products from product master. Lot option can be used to group related

items together.

Step 6: When you enter all the required information in relevant fields, you can perform a

check by clicking on Check button at the top of screen.

Step 7: You can save your bid by clicking on Hold button.

Step 8: When you click on Complete, it shows that the bid has been checked and it is

ready for publishing.

Step 9: You can select the Publish button to publish the bid invitation.

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Step 10: Go to SRM Portal -> Strategic Purchasing -> Strategic Sourcing

Step 11: On the left side, you have an option to create RFx. Click on RFX and you will be

prompted to select RFx type. Select RFx type and click on Start.

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Step 12: At the top, you can see basic data bout RFx like RFx#, Name, type, status,

created by, etc.

Step 13: Under Event parameters, you can define the output field — if it is a Purchase

Order or a Contract.

Step 14: Go to Bidders tab; here you can search bidders from internal or external

directories.

Step 15: You can also type the bidder company id and click on Add button to add the

bidders to the list.

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Step 16: Go to Items tab, enter item details like description, product category, quantity,

Delivery date, lot and item type etc.

Step 17: You can add any other notes and attachments. If you want some specific

questions to be raised with the Bidder, go to RFx information tab -> Questions -> ADD

Question

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Step 18: You can find existing questions or can create new questions as per the

requirement. To add the comment in bid, select the check box.

Step 19: To add weight and score to the question, go to the tab and add weight. You

can also assign percentage and value for which 100% score will be provided.

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Step 20: When all the details are entered, you can publish RFx. All the suppliers will get

an email message.

Step 21: All the documents and RFx details will be sent in attachment as per the

configuration. You can also attach images of goods in RFx and the same will be received

by suppliers in an email message.

Step 22: In the email message, a hyperlink is provided where bidders can login and enter

the bid details. They can select RFx and submit a response.

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Step 23: To participate in bidding, click on the Participant button and the purchaser will

be notified. To create a bid and enter the details, click on the Create Bid button.

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A Quotation is defined as a response to RFx, where a bidder confirms the selling of goods

and services to buyers/purchasers as per specific criteria. As part of bid invitation process

when an email is triggered, the supplier gets the information on the request for quotation.

Suppliers start bidding as per the bid invitation and when they submit the bid in SAP

Bidding Engine, the final price is shown. Suppliers can bid till the end date is reached and

once bids are closed, purchasers can perform a price comparison to get the best supplier

and to award the bid, and a purchase order can be raised for the best supplier.

In case, when the number of bidders is less or purchaser feels that there is not a best bid,

he can always convert RFx to live auction.

Live Auction Cockpit allows purchasers to get a real-time environment for direct bidding

on reverse live auctions. This provides an experience similar to a live auction by utilizing

the technology to share the updated information.

Creating Live Auction

Let us now understand how to create live auction.

To create a live auction, purchasers can use SAP Bidding engine and auction takes place

in Live Auction cockpit. Purchasers can create live auction:

Using an Auction template

By copying an Auction

In SRM portal, from the Sourcing application

Purchaser can also convert RFx to a live Auction

9. SAP SRM — Quotation and Live Auction Cockpit

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You can create different documents types under Auction, click on continue after selecting

the document.

Enter the details under different tabs to create a new Auction.

Scroll down in the Header tab to define various roles for the auction like owner,

collaborator, reviewer, etc. To add a user to auction, click on Add User.

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When you enter all the details, click on Save -> Done

Converting RFx to Auction

You can create a live Auction from an RFx by choosing Convert to Auction button in RFx

-> Enter the Auction transaction type and bids to copy to the auction directly.

When you convert RFx to an auction, the RFx is set to the status Completed and you

cannot make any changes to it.

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Procurement functions are seamlessly integrated between SAP ERP and SRM. There are

various business functions that allow a fully integrated, end-to-end procurement

management solution to improve both compliance and procurement management process

as per business requirements. It helps in closing the gap in ERP sourcing functionality

using SRM capabilities and provides a common UI for designing integrated procurement

processes.

Follow this data for Procurement in SRM Integration:

Technical Data

Technical Name of Business Function LOG_MM_P2PSE_

Type of Business Function Enterprise Business Function

Technical Usage Central Applications

Application Component MM-PUR, MM-SRV

When you use this business function for integration of procurement management process

in ERP with SRM, following business functions are activated by default:

Procure to Pay LOG_MM_CI_2

Operations enterprise services 2 LOG_ESOA_OPS_2

This business function can be used to implement specific functions for buyers that allows

you to further optimize service procurement across SAP ERP and SAP SRM.

10. SAP SRM — Procurement

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In SAP SRM, you can enter invoices that contain goods with reference from Purchase

Orders or without Purchase Order. When invoices are created with reference to Purchase

Orders, data from the PO is automatically used in invoice creation from the system.

In SAP SRM, invoices can be created in the following ways:

Using local Purchase Orders

For which confirmations have already been entered or for which no confirmations

are expected.

With value limit (provided the value limit has not been exceeded).

For services

When there are no purchase orders or confirmations, you enter the data from a

supplier invoice that you have received by means other than the system.

Creating Collective Invoice

You can also create collective invoices by entering additional purchase orders. Purchase

order numbers can be searched in system or you can enter them directly and transfer

these purchase orders to the invoice.

The following data must be the same in all purchase orders:

Currency

Backend System Details

Supplier

Company Code

Withholding Tax: You can enter the withholding tax and this is defined for a

country or supplier under Customizing. To define withholding tax, go to SRM Server

-> Cross Application Basic Settings -> Tax Calculation -> Activate Withholding tax

11. SAP SRM — Invoicing and Purchase Order

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Shopping cart helps purchasers by making procurement process fast and more responsive.

As per SRM deployment model, a shopping cart creates the follow-up model in backend

system or in the SRM system itself. When you add items in a shopping cart, it automatically

sends for approval. You can also address shopping cart as template and this can be used

later as reference from other shopping cart requests.

In SRM, you can handle various order scenarios:

Catalogue Shopping (External and internal catalogues)

Purchasing for team

External goods request

Buy on others’ behalf scenario

Shopping cart creation and backend processing depends on the deployment scenario. In

a classic model, you create the shopping cart in the SRM system and all other procurement

process — PO, goods receipt, and follow-up documents are worked upon in the backend

system.

In Extended Classic Deployment scenario, shopping cart is created in the SRM system and

PO and follow-up documents are also created in SRM and replicated in the backend system.

In a Standalone Deployment scenario, shopping cart and other processing is done in the

SRM system and only final invoice is sent to the backend system for financial accounting.

Each Shopping Cart normally contains the following fields:

Every shopping cart item is composed of the following tabs:

Item Data

Account Assignment (costing of items)

Sources of Supply (Assignment of suppliers)

Availability (Item Availability)

Notes and Attachments (To add attachments and text notes)

Delivery Address

Approval Process Overview

Related Documents (Follow-on documents for shopping cart)

12. SAP SRM — Shopping Cart

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Types of Shopping Cart

In SRM, you can use different applications to use Shopping Carts:

Professional Shopping Cart Form

In this shopping cart, most of the fields are used by professional buyers and employees.

In the header section, you have the details of shopping cart — cart number, name, status,

creation date and created by.

If you want to use the buy on behalf option, this information can be entered in the

General tab. You can also check default values and approval process in this tab.

At the bottom, you have details of the item that has been added to cart. To add a new

item, you have to click on Add Item button.

Simple Shopping Cart Form

Like the above shopping cart, you can use a simplified shopping cart form with less number

of fields. This is suitable for users who haves no experience and limited authorization.

It only depends on the catalogs and no other options are there for purchasing.

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Using the Search option, you can find the items in catalog and add to shopping cart.

Advance Search option allows you to search a single catalog too.

Shopping Cart Wizard

Purchasers can also use the Shopping Cart Wizard to provide complete shopping

experience. It is a 3 step/4 step approach as per the SRM Version method where the

Wizard helps you go through the entire process. This is recommended for purchases with

less experience to perform purchasing.

Key Steps in Creating a Shopping Cart

Following are the key steps in creating a shopping cart:

Selecting Goods/Services

Shopping Cart

Complete and Order

Confirmation

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You can use the Next button to move from one step to another. To check existing

templates, you can use the Browse button where you can search old shopping carts and

templates.

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Supplier self-service is one of the components in SRM that shortens the procurement life

cycle and reduces the costs involved in the procurement process. In SUS, suppliers are

provided with access to purchaser’s procurement system and they are able to provide fast

response.

As part of integration, SUS is installed separately and configured to work with SAP ERP or

the SAP SRM system. When you connect to SAP ERP, this allows the user to collaborate

on POs containing service item hierarchies.

In SUS, you can perform basic functions related to procurement process and documents

in processing. The key functions include:

Display

This function displays a document flow list containing all documents connected with a

particular procurement document and indicating their statuses.

Download

You can use this function to download any type of document in CSV or XML formats.

Print

This function is used to print the document in CSV, XML or PDF format.

Hold

You can use this function to hold invoices, credit memos, and confirmations locally and

edit them later.

Copy

This function can be used to copy an invoice.

Supplier Self-service: Other Functions

There are various other functions like Update, Refresh that can be used to handle

procurement process more effectively.

13. SAP SRM — Supplier Self-Service

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To open SUS portal, go to Order Collaboration -> Supplier Services.

On the left side, you have the navigation menu.

To view new Purchase Orders, a supplier can click on the New button. You will see all new

Purchase Orders which are not worked on.

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Click on document number to view the details of the Purchase Order. To maintain

confirmation, click on the Process button.

A vendor can accept all the items or can reject all items. To accept or reject a single item,

you can click on the tick or the cross button.

To save the confirmation, click on the Save button and to send the notification, click on

the send button. Once confirmation is sent, a purchaser has an option to accept or reject

the confirmation if there are any differences. When a purchaser rejects the confirmation,

the supplier can submit a new confirmation.

When a purchaser accepts the confirmation, next is to confirm the shipping notification.

Go to Create ASN on home page.

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Enter the details sold to party, ship to address and click on goods delivered to recipients

to transfer them to the Purchase Order.

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In SAP SRM, Live Auction Cockpit allows you to perform auctions in real time scenario. As

discussed in the previous chapters, you can convert RFx to Live Auction or can create a

new Auction in SRM Portal. As mentioned, Live Auction Cockpit is available in both Java

and ABAP.

LAC is deployed as part of the overall installation of SAP SRM with SAP NetWeaver Java

Application Server (J2EE Engine). If you install the SRM ABAP system and J2EE Engine on

the same machine, ABAP backend system is the default data source, as desired. However,

if you install the J2EE Engine on a separate machine, you must change the default setting

and select the SRM ABAP backend as the data source for the J2EE Engine.

The following deployment options are available:

Live Auction Cockpit on Java Web Server

Live Auction Cockpit on ABAP Web Server

Live Auction Cockpit on Java Web Server in supplier self-services

Live Auction Cockpit on ABAP Web Server in supplier self-services

To facilitate customization, the resource files for the Live Auction Cockpit applet are

packaged separately from the web application itself. In order for the applet to retrieve its

resources, the web server must make the resource files accessible via HTTP. This is

achieved by creating a web alias for the directory that contains the resources. Without this

alias, the applet cannot load properly.

To define a Web alias, go to SAP NetWeaver.

You should have administrator privilege for NetWeaver Administration.

Go to Configuration -> Infrastructure -> Java HTTP Provider Configuration -> Aliases. Click

on Add alias -> Enter name and path and click on Save button.

14. SAP SRM — Post Installation for LAC

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To configure single sign-on, you need to have access to these T-codes:

RZ10

STRUST

Step 1: Login to the SAP SRM system using SAP GUI, go to T-code RZ10.

Step 2: Select the Default profile and Extended Maintenance after that.

Step 3: Click on Change and you will see the list of parameters for the profile.

15. SAP SRM — Configuring Single Sign-on

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Step 4: Change the following profile parameters:

login/create_sso2_ticket = 1

login/accept_sso2_ticket = 1

Step 5: Save and Activate the profile. It will generate a new profile.

Step 6: Export the R3SSO certificate from the Trust Manager, go to transaction STRUST.

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Step 7: Double-click the text box to the right of Own Certificate. The certificate

information is displayed. Note down the values of certificate as you need to enter the

values.

Step 8: Click on icon Export Certificate.

Step 9: Save the file as <R3_Name>-<Client>.crt

Example

EBS-300.crt

Step 10: Click on the tick mark to create the file in parent directory.

Step 11: Import R3 SSO certificate to the Java engine using the administrator tool.

NOTE: Make sure the Java engine is started.

Step 12: Open the Java Administration tool.

Step 13: Enter the Java Engine Administrator password and click on Connect.

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Step 14: Choose Server -> Services Key -> Storage

Step 15: Click on Ticket Key Store in the View panel.

Step 16: Click on Load in the Entry group box. Select the .crt file you exported in the

previous step.

Step 17: Configure the Security Provider service in the SAP Java engine using the

Administrator tool.

Step 18: Choose Server Services Security Provider.

Step 19: Choose ticket in the Component panel and go to the Authentication tab.

Step 20: Modify the options of Evaluate Ticket Login Module and add the following

properties to each backend system on which you want to configure SSO.

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Supplier evaluation is one of the key processes in maintaining and improving long term

relationships with the suppliers.

SAP supports two main methodologies for Supplier Evaluation:

Event-driven evaluation, triggered from confirmation, invoice, and advanced

supplier list

Ad-hoc surveys using the Supplier Survey Cockpit

Creating Supplier Survey Cockpit

Each supplier survey has a unique id and you need to configure the number range in SAP

server. Go to SRM Server -> Cross Application Basic Settings -> Number Ranges -> SRM

Server Number ranges -> Define number range for survey.

16. SAP SRM — Supplier Evaluation

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You can enter numeric and alphanumeric ranges in the number range.

Evaluation Area

You can also define the evaluation area — how a survey can be classified and a part of the

organization is evaluated.

Example

Evaluation areas could be Marketing, Production and Finance.

Step 1: To define Evaluation Area, go to SRM Server -> Supplier Evaluation -> Evaluation

Area

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Step 2: Click on new entries and enter the area and description. To save the area click on

the Save icon at the top.

0

Evaluation Category

In supplier evaluation, you can divide each survey as per the evaluation category. This

refers to the questionnaire and the target group.

Example

Delivery, Quality, etc.

Step 1: To define the Evaluation area, go to SRM Server -> Supplier Evaluation ->

Evaluation category

Step 2: To send and receive questionnaires via email, you have to create mail user using

transaction SU01.

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There is a requirement from clients to upgrade from SRM-MDM Catalog 2.0 service pack

04 to SRM MDM Catalog 7.01 or to upgrade from SRM MDM catalog 7.01 to SRM MDM

catalog 7.02 and there shouldn’t be any data loss.

Let us follow these steps to perform catalog:

Step 1: Uninstall the old SRM-MDM Catalog 7.01 components.

Step 2: Install the new SRM-MDM Catalog 7.02 installation packages.

Step 3: Upgrade the existing repositories.

Step 4: When repository upgrade is completed, load repositories with index updating.

Step 5: Perform upgrade SRM-MDM Catalog Search UI.

You may also need to perform these optional steps:

You can upgrade SRM-MDM Catalog Web UI for Approver.

You can upgrade MDM Web UI

You can upgrade MDM ABAP AP

Perform all the component-specific activities.

17. SAP SRM — SRM MDM Catalog Upgrade

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In SAP SRM, there are various activities that can be performed under security. Security

deals with:

User authorization

User authentication

Single Sign-on

Data transfer between SRM applications with secure methods

Managing access control

SAP SRM is based on SAP NetWeaver platform, so you configure the security for SRM

similar as in SAP NetWeaver.

Managing User Administration and Authentication

There are various user management tools that you can use in SAP NetWeaver. These tools

are inbuilt to SAP system and can be called from transactions.

Using these tools, you can manage the application platform for Java and ABAP.

Managing Users in ABAP Engine

Step 1: You can manage users in the SAP system using T-Code: SU01, you can use this

to manage users in ABAP system.

18. SAP SRM — Security

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Step 2: To create a new user, enter the username and click on Create button.

Step 3: You will be directed to the next window where you can see multiple tabs. In the

Address tab, enter the details about the user. Title, first name, last name, academic title,

and other details.

Step 4: In Logon Data tab, enter the details like User type, Password details, etc.

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Step 5: Go to the Roles tab to add the role as per business requirement. There are

predefined roles as per different modules.

You have an option to select from single roles or composite roles.

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Step 6: You can scroll to different tabs. In Groups, you can add a user to different groups.

Step 7: When you enter all the details, you can click on the Save button at the top.

Profile Generator (PFCG)

Transaction — PFCG

You can use this transaction to manage roles in ABAP system and to provide user

authorization. You can create new roles, copy existing roles, define single and composite

roles, etc.

Step 1: In the following screen, you have to enter the role name and click on

Single/Composite role.

Step 2: To copy an existing role, you can click on the Copy Role button. Select the role

from the list of existing roles, you can select Single/Composite Role.

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Step 3: To change a role. Select the role from the list and click on the Change button.

Step 4: When you go to the User tab, you can see the list of users that has been applied

to this role. You can see user id, user name, from and to date.

Step 5: You can also perform a user comparison master record or can add a direct user

to this role.

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Central User Administration

You can use this method to centrally maintain users for multiple ABAP-based systems.

This method also supports synchronization with a directory server.

These system users are required for RFC configuration between two clients. These RFCs

are also required to transfer the data here.

You need to create the following in the respective clients with the following defined roles:

Client 1: 400 User, this is a central system — CUA_EC400

Client 2: 410 User, this is a child system — CUA_EC410

The usernames mentioned above have been created in client 400 and 410 respectively

with the following roles:

User CUA_EC400 is associated with the following roles (roles in the central system):

SAP_BC_USR_CUA_CENTRAL

SAP_BC_USR_CUA_CENTRAL_BDIST

SAP_BC_USR_CUA_CENTRAL_EXTERN

UME Engine

You can use Web-based UME administration console to maintain users, roles and

authorizations in Java-based systems that use the UME for the user store.

User Types

When you create a new user, you can select the following user types:

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Each user has its own description as per business requirement. A dialog user is required

to login to system as an individual user.

The following are the different user types in SAP:

Dialog Individual, interactive system access

System Background processing and communication withing a system (Such

as RFC users for ALE, Workflow, TMS, and CUA)

Communication Dialog-free communication for external RFC calls

Service Dialog user available to a larger, anonymous group of users.

Reference

General, non-person related users that allow the assignment of

additional identical authorizations, such as for Internet users created

with Transaction SU01. No logon is possible.

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As mentioned in previous chapters, in SAP SRM you can go for various deployment

scenarios based on the business requirement. Different deployment scenarios support

different procurement processes and the processing of goods receipt and invoices.

In SRM, you can use the following two types of data exchange:

Using external user interfaces

Using external system interfaces

It is recommended that you use SAP Web Dispatcher to access the SRM components that

are protected in internal firewall and are not known to outside users. SAP Web Dispatcher

is also used to implement SAP security standards in common scenario.

To implement security, it is necessary to find out the software component you need to

install as per the business scenario and the SAP SRM package.

19. SAP SRM — System Landscape

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Operational Contract Management

Let us now understand Operational Contract Management.

We have the following processes under Operational Contract Management:

Strategic Sourcing: For Strategic Sourcing, you can use:

o RFx

o Live Auction cockpit

o Service procurement

o Service procurement

o Service procurement external staffing

o Catalog management

Self-user Service SUS: For Self-user Service SUS, you can use:

o SUS Classic

o SUS extended classic

o BI Analytics

o Spend Analysis

o Supplier Evaluation

o SAP SRM procurement for Public sector

As per the software components, you have to decide the deployment scenario and security

guidelines in SAP SRM system.

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In SAP SRM, data exchange occurs with HTTPS connection using SSL encryption that is

used to protect data from unauthorized access. SSL stands for Secure Socket Layer.

While performing secure network and communication in SAP system, the following points

can be considered:

Network topology of SAP system

Firewall configuration

Transport layer security

Using multiple network zones

In SAP SRM system, all the components that use HTTP protocol support encryption of data

using SSL protocol and as per the protocol data are transferred. The components include

confidential data like system password, etc. As per data transfer and protocol, you can

also apply transport level security.

SSL can be used to increase the security between business systems and adapters, business

system and integration server.

Destination Delivered Type

SAP ERP (Classic Scenario) No RFCs and SOA Services

SAP ERP (Extended Classic

Scenario No RFCs and IDocs

SAP Customer Relationship

Management (SAP CRM) No RFCs and SOA Services

Collaboration Projects (cPro) No

XML communication using SAP

NetWeaver Process Integration (SAP

NetWeaver PI) (Web services)

CFolders No RFCs

This shows the system and components and relevant communication destinations for the

SAP SRM system.

To communicate with external systems, you need to activate the following services in SAP

SRM system:

/sap/bc/webdynpro/sapsrm

/sap/bc/srm

/sap/bc/bsp/sapsrm

20. SAP SRM — Network and Communication Security

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/sap/sapsrm/

/default_host/sap/bc/srm

/default_host/sap/bc/webdynpro/sapsrm

/default_host/sap/bc/bsp/sapsrm

To use NetWeaver Business client for SRM, you need to activate the following:

/default_host/sap/bc/nwbc/srm

To use Live Auction cockpit, you need to activate the following:

/sap/lacmessaging

To activate these services, use T-code — SICF

In Hierarchy type, select service and click on Execute button. In the next window, you

can maintain service. Select the required ICF service in the ICF tree in transaction SICF.

Activate the ICF service in one of the following ways:

Using menu option Service/Host -> Activate

Using the context menu and choosing Activate Service

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Default_host node is inactive in transaction SICF; the HTTP requests could result in ABAP

runtime error RAISE_EXCEPTION with the following short text:

Exception condition "HOST_INACTIVE" triggered.

If a service is inactive in transaction SICF, an error text appears when you try to access

the service.

To support internet protocols HTTP, HTTPS and SMTP —

/default_host/sap/public/icman is activated in transaction.

This service is used to decide how HTTP requests are distributed.

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Other Internal Services in SAP

Let us now understand the other internal services in SAP:

default_host/sap/bc/echo

This is used to provide information about the logon procedure in use, header and form

fields and the SSO cookie generated for the processed request. This service should be

activated only for error analysis.

/default_host/sap/bc/error

This service creates some error situations in the system and should only be activated for

error analysis. To activate/deactivate service, you have to right-click on service.

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You can also perform auditing and logging information in SAP SRM. The user information

system can be used to check the details about user, roles, profiles and authorizations.

To check change documents for users, use T-code — SU01

You will be directed to the next window where you can enter the selection criteria.

21. SAP SRM — Auditing and Logging

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To enter the user information system and to check wide range of functions related to user

history, use T-code — SUIM

You can expand each of the section to see the Change history. Various change/audit logs

can be checked using the User Information System.

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To view Business Partner history, you can use T-code — BP

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